This study examines GAAP effective tax rate (ETR) visibility as a distinct disclosure choice in firms’ financial statements. By applying game-theory model for the voluntary strategies of firms, setting, we argue that firms face trade-off their ETR decisions. On one hand, have an incentive to enhance when ratio offers shareholders ‘favourable conditions’, example, higher expected after-tax cash ...

This study aims to analyze the effect of Tax Reform, Size, Profitability and Leverage on Effective Rate (ETR) financing companies Tbk listed IDX in 2021. research is a descriptive quantitative type, using sample 16 finance based statistical data Financing Institution as December 2021 issued by OJK. The method used this regression that useful for analyzing influence relationship financial variab...

We estimate the elasticity of corporate taxable income with respect to the effective corporate tax rate on the basis of a pseudo-panel constructed from corporate tax return micro data for the period 1998-2001, a period which saw the introduction of a major corporate tax reform in Germany. Endogeneity of the effective tax rate is controlled for by an instrumental variable approach. Our instrumen...

This paper analyses the impact of effective average and marginal tax rates on the size of the capital stock owned by foreign affiliates of US multinational companies. We use data on 20 OECD countries, 1983-1998. A simple two-stage model of location choice, and investment conditional on location, identifies the role of each form of effective tax rate. The results indicate a large and significant...